Harley-Davidson Inc (HOG, Financial) has experienced a notable uptick in its stock performance, with a market capitalization of $5.18 billion and a current price of $37.9. Over the past week, the company's stock price has seen a modest gain of 0.29%. More impressively, over the past three months, the stock has surged by 16.09%. According to GF Value, the stock is currently valued at $43.24, up from a past GF Value of $41.75, indicating that the stock is modestly undervalued both currently and in the recent past.
Company Overview
Harley-Davidson Inc, a stalwart in the vehicles & parts industry, is renowned for its heavyweight motorcycles and a broad array of related products and services. The company's offerings include parts, accessories, riding gear, apparel, and financial services. Despite facing challenges in 2020, Harley-Davidson has made strides in expanding its market presence, particularly with the introduction of the Pan America model and the electric LiveWire brand. The company's market share in domestic retail motorcycle registrations stands at 38% in 2023, reflecting its ongoing efforts to reclaim its historical dominance.
Profitability Insights
Harley-Davidson's profitability is robust, with a Profitability Rank of 8/10, which is a testament to the company's strong financial health and its likelihood to maintain this trend. The company boasts an Operating Margin of 13.35%, outperforming 87.48% of 1,286 companies in the industry. Its Return on Equity (ROE) is an impressive 22.43%, surpassing 90.13% of its peers. Additionally, Harley-Davidson's Return on Assets (ROA) and Return on Invested Capital (ROIC) stand at 5.87% and 6.56% respectively, further underscoring its profitability. The company has also maintained profitability for the past 10 years, a feat better than 99.92% of 1,213 companies in the same space.
Growth Trajectory
Harley-Davidson's Growth Rank stands at 6/10, reflecting a balance of historical performance and future potential. The company has seen a 3-Year Revenue Growth Rate per Share of 15.20%, which is better than 73.65% of 1,207 companies. Its 5-Year Revenue Growth Rate per Share is 4.20%, outperforming 55.47% of 1,096 companies. However, the Total Revenue Growth Rate for the next 3 to 5 years is estimated at -6.00%, which, while not as strong, is still better than 2.62% of 191 companies. The 3-Year EPS without NRI Growth Rate is an impressive 98.30%, and the 5-Year EPS without NRI Growth Rate is 15.10%. The EPS Growth Rate for the next 3 to 5 years is projected at 2.15%, which is better than 14.29% of 49 companies.
Investor Holdings
Notable investors have taken an interest in Harley-Davidson, with Bestinfond (Trades, Portfolio) holding 1,245,167 shares, representing 0.89% of the company. Steven Cohen (Trades, Portfolio) follows with 560,500 shares, accounting for 0.4%, and HOTCHKIS & WILEY holds 474,150 shares, making up 0.34% of the company's shares.
Competitive Landscape
Harley-Davidson operates in a competitive market, with close rivals such as Polaris Inc (PII, Financial) with a market cap of $5.2 billion, Brunswick Corp (BC, Financial) valued at $6.04 billion, and Thor Industries Inc (THO, Financial) with a market cap of $6.73 billion. These competitors are within the same industry and have market capitalizations that are comparable to Harley-Davidson's.
Conclusion
In summary, Harley-Davidson Inc's recent stock performance has been positive, with a 16.09% gain over the past three months and a current valuation that suggests the stock is modestly undervalued. The company's strong profitability metrics and consistent growth in EPS highlight its financial health and potential for future growth. While facing stiff competition, Harley-Davidson's strategic expansions and product diversification suggest a resilient market position. For value investors, the current market dynamics and company fundamentals present an interesting opportunity for consideration.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
